What's Happening?
Solicitor General Tushar Mehta has expressed concerns over the current state of arbitration practices, highlighting issues of integrity and transparency. Mehta noted that it is often possible to identify the law firm and litigant involved in a case simply by knowing the arbitrator's name, suggesting a lack of impartiality. He proposed mandatory publication of all arbitral awards on a single platform to enhance transparency and accountability. Mehta also criticized the frequent adjournments in arbitral proceedings due to overburdened arbitrators and suggested the creation of a special tribunal dedicated to handling Section 34 matters, which govern challenges to arbitral awards.
Why It's Important?
The concerns raised by SG Tushar Mehta are significant for the legal industry, particularly in the field of arbitration. His critique points to potential biases and inefficiencies that could undermine the credibility of arbitration as a dispute resolution mechanism. The proposed reforms, such as mandatory publication of awards and the establishment of a dedicated tribunal, aim to improve transparency and reduce the burden on courts. These changes could lead to more equitable arbitration processes, benefiting both government bodies and private parties involved in disputes.
What's Next?
If Mehta's suggestions are considered, there may be legislative or policy changes aimed at reforming arbitration practices. Stakeholders in the legal industry, including law firms, arbitrators, and corporate entities, may engage in discussions to address the issues raised. The implementation of a single platform for publishing arbitral awards could require collaboration between government agencies and legal institutions. Additionally, the proposal for a special tribunal may prompt debates on its feasibility and effectiveness in improving arbitration outcomes.
